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Workplace Suspension Rights and Rules

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Workplace disputes & advice

Insight

Many employees don't realise that most workplace suspensions should be paid, and that employers must follow proper procedures even during investigations. Understanding your rights during suspension can prevent financial hardship and protect your employment relationship.

Workplace suspension occurs when an employer temporarily removes an employee from their duties, usually pending an investigation or disciplinary process. While suspension can be a legitimate management tool, it must be handled fairly and in accordance with employment law and good faith obligations.

Suspension affects both your immediate income and your long-term employment relationship. Whether you're facing suspension as an employee or considering it as an employer, understanding the rules around pay entitlements, proper procedures, and time limits is crucial for protecting your rights and interests.

This guide explains when suspension is justified, what you're entitled to during suspension, and what steps to take if you believe the suspension is unfair or improperly handled.

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Understanding Workplace Suspension

Workplace suspension is the temporary removal of an employee from their normal duties while maintaining the employment relationship. It's typically used when an employer needs to investigate allegations of misconduct, when there are safety concerns, or when an employee's continued presence might compromise an investigation.

Suspension is not disciplinary action in itself, but rather a neutral step that allows proper investigation while protecting all parties involved. However, the impact on the suspended employee can be significant, affecting their income, reputation, and wellbeing.

Under New Zealand employment law, employers must act in good faith when implementing suspension. This means being fair, reasonable, and transparent about the reasons and expected duration. The suspension must be justified by the circumstances and conducted according to proper procedures.

Common reasons for suspension include allegations of theft, harassment, safety violations, or conflicts of interest. However, suspension should not be used as punishment or to pressure an employee to resign.

Warning: Don't assume that unpaid suspension is automatically unfair. The key test is whether the employer had reasonable grounds to suspect serious misconduct that could justify dismissal. However, if you believe the suspension is unjustified, seek legal advice promptly.

The default position in New Zealand is that suspended employees should continue to receive their normal pay and benefits. This is because suspension maintains the employment relationship, and the employee remains available for work even though they're temporarily excluded from the workplace.

Unpaid suspension is only justified in limited circumstances, typically when the employee is suspected of serious misconduct that could warrant dismissal for serious misconduct. Even then, the employer must have reasonable grounds for believing serious misconduct has occurred.

During paid suspension, you should receive your full salary, allowances, and benefits including health insurance and KiwiSaver contributions. Annual leave and sick leave should continue to accrue normally. If you normally receive overtime or commission payments, the treatment of these depends on your employment agreement terms.

If you're suspended without pay inappropriately, this could constitute unjustified disadvantage and give you grounds for a personal grievance. The financial impact of unpaid suspension can be severe, making it crucial to understand your entitlements and seek advice if necessary.

Proper Procedures for Suspension

Employers must follow proper procedures when implementing suspension to ensure it's justified and fair. The process should start with a clear explanation of the concerns that have led to the suspension decision, provided in writing where possible.

The employee should be told the expected duration of the suspension, or at least given regular updates about the investigation's progress. Employers should also explain what the employee can and cannot do during the suspension period, including any restrictions on contacting colleagues or accessing company systems.

Good practice requires employers to consider alternatives to suspension, such as temporary redeployment, increased supervision, or working from home. Suspension should only be used when these alternatives are not suitable or sufficient to address the concerns.

The investigation during suspension must be conducted promptly and thoroughly. Unreasonable delays can make the suspension unjustified, even if it was initially appropriate. Employees should be kept informed of progress and given opportunities to respond to allegations through the disciplinary process.

Step 1

Immediate notification

Employee is informed of suspension with clear reasons and expected duration

Step 2

Written confirmation

Suspension details, pay arrangements, and restrictions are confirmed in writing

Step 3

Investigation process

Thorough and prompt investigation with regular updates to the suspended employee

Step 4

Resolution and outcome

Investigation concludes with clear decision about return to work or further action

Employee Rights During Suspension

Insight: Many employees don't realise they can challenge the suspension process itself, not just the final outcome. If proper procedures aren't followed or the suspension becomes unreasonably long, this can be grounds for a grievance even if the original concerns were legitimate.

Suspended employees retain most of their normal employment rights and protections. You have the right to be treated fairly and in good faith throughout the suspension period, including receiving clear information about the reasons and expected timeframe.

You're entitled to representation during any meetings or interviews related to the investigation. This can be a support person, union representative, or lawyer, depending on the circumstances and your employment agreement terms.

Your right to confidentiality should be respected, meaning the employer should only share information about the suspension with those who need to know for legitimate business reasons. Unnecessary disclosure that damages your reputation could give rise to additional grievances.

You also have the right to respond to any allegations and provide your version of events. The investigation should be conducted fairly, considering all relevant evidence and giving you adequate opportunity to explain your position.

If you believe the suspension is unjustified or being handled improperly, you have the right to raise a personal grievance for unjustified disadvantage. This must be done within 90 days of the grievance arising.

Challenging Unfair Suspension

If you believe your suspension is unjustified or improperly handled, there are several steps you can take to protect your rights and seek resolution. The first step is to request written details about the specific reasons for suspension and the expected investigation process.

Document everything related to your suspension, including the initial conversation, any written communications, and the impact on your wellbeing and finances. Keep records of any attempts to contact your employer and their responses.

Consider whether the suspension meets the legal tests for justification. Ask yourself whether there were reasonable grounds for the employer's concerns, whether proper procedures were followed, and whether the duration is reasonable given the circumstances.

If you identify problems with the suspension, raise these concerns formally with your employer first. Many suspension issues can be resolved through direct communication, particularly if the problems stem from misunderstanding rather than deliberate unfairness.

If direct resolution isn't possible, you may need to consider raising a personal grievance for unjustified disadvantage. This is particularly important if the suspension is affecting your income, reputation, or mental health significantly.

Need help challenging a suspension?

If you believe your suspension is unfair or improperly handled, get legal advice about your options and rights.

Impact on Employment Relationship

Suspension can significantly affect the ongoing employment relationship, even when handled properly. The stress and uncertainty of being suspended can damage trust between employer and employee, making it important to handle the process sensitively.

For employees, suspension can cause anxiety about job security, financial stress if pay is affected, and concerns about reputation among colleagues. These impacts can persist even after returning to work, particularly if the suspension was lengthy or highly visible.

Employers also face risks from suspension, including potential grievance claims if the process is mishandled, loss of productivity during the employee's absence, and possible damage to workplace relationships and morale.

The way suspension is resolved often determines whether the employment relationship can continue successfully. Clear communication, fair processes, and appropriate support can help rebuild trust and maintain a positive working relationship.

In some cases, suspension may lead to the end of the employment relationship, either through dismissal following the investigation or through the employee choosing to resign. Understanding the potential outcomes helps both parties make informed decisions about how to proceed.

Returning to Work After Suspension

When an investigation concludes that no disciplinary action is warranted, the employee should be able to return to work without prejudice. This means treating them as if the suspension never happened, with no ongoing disadvantage or stigma.

Employers should communicate clearly with the returning employee and their colleagues about the resolution, while respecting confidentiality requirements. The goal is to restore normal working relationships and prevent ongoing tension or speculation.

Sometimes additional support may be needed to help the employee readjust to the workplace, particularly after a lengthy suspension. This might include catch-up briefings, training updates, or counselling support if the experience has been particularly stressful.

If the investigation results in disciplinary action short of dismissal, the return to work process should be handled carefully to ensure the employee understands expectations and has the support needed to meet them.

In cases where the employment relationship has been damaged by the suspension process, both parties might consider whether mediation could help resolve ongoing issues and restore a productive working relationship.

Important: Don't wait until after the suspension is resolved to seek legal advice if you have concerns. Early intervention can often prevent problems from escalating and may lead to better outcomes for all parties involved.

Consider seeking legal advice if you're suspended without clear reasons, if the suspension is unpaid when you believe it should be paid, or if the process seems unfair or one-sided. Early advice can help you understand your rights and options before the situation escalates.

Legal advice is particularly important if the suspension is lengthy without clear progress on the investigation, if you're being pressured to resign, or if you believe the suspension is being used to avoid proper disciplinary procedures.

If you're considering raising a personal grievance about the suspension, get legal advice before taking action. The 90-day time limit for raising grievances means timing is crucial, and proper preparation can significantly improve your chances of success.

Employers should also consider legal advice when implementing suspension, particularly in complex cases or when the employee is represented. Proper legal guidance can help ensure procedures are followed correctly and reduce the risk of successful grievance claims.

Remember that employment law is complex and the stakes are high for both employees and employers. Professional legal advice can help navigate the process effectively and protect your interests throughout the suspension period.

Frequently Asked Questions

Can my employer suspend me without pay?

Generally, employers can only suspend you without pay in limited circumstances, such as when you're suspected of serious misconduct that could warrant dismissal. For most suspensions, you should continue to receive your normal pay and benefits.

If you've been suspended without pay inappropriately, this could constitute a breach of your employment agreement and you may have grounds for a personal grievance.

How long can a workplace suspension last?

There's no specific time limit for suspensions in New Zealand employment law, but they must be reasonable in the circumstances. Most suspensions should be resolved within a few weeks.

Extended suspensions without good reason can become unjustified and may give you grounds to raise a personal grievance for unjustified disadvantage.

What should I do if I think my suspension is unfair?

First, request written details about the reasons for your suspension and the expected timeframe. Keep detailed records of all communications and any impact on your wellbeing or finances.

If the suspension appears unjustified or is causing significant disadvantage, consider seeking legal advice about raising a personal grievance. You have 90 days from when the grievance arose to take action.

Can I work elsewhere while suspended?

This depends on the terms of your employment agreement and the reason for suspension. If you're suspended pending investigation, your employer may require you not to work elsewhere, especially if there are confidentiality or conflict of interest concerns.

Check your employment agreement for any restrictions and consider seeking legal advice if you're unsure about your obligations during suspension.

What happens to my benefits during suspension?

During a paid suspension, you should continue to receive all your normal employment benefits, including health insurance, KiwiSaver contributions, and accrual of annual leave.

If you're suspended without pay, the treatment of benefits depends on your employment agreement terms and the circumstances of the suspension.

You don’t need all the answers

Employment issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.

Get help with workplace suspension issues

If you've been suspended from work or need advice about suspension procedures, Find A Lawyer can connect you with employment law specialists who understand your rights and options.

Our network includes experienced employment lawyers who can review your situation, explain your entitlements, and help you navigate the suspension process effectively.

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